Consumer reactions to out of stock of hedonic products

Abstract

In this study we paid attention to out of stock problem, as one of the issues that affects all supply chain participants. Besides describing and analyzing many theoretical approaches concerning this problem, we focused on antecedents that specify out of stock situations (OOS). Special attention was dedicated to the hedonic level of a product as an important OOS variable. We investigated its influence on different consumer out of stock reactions. For this research, we used the sample of 4 different product categories, which were classified in hedonic or utilitarian groups of products. Our results showed a positive relation between the hedonic level of products and the probability of store switching. As this out of stock reaction causes the risks of sales and customer losses, the results of this study can be used by retailers and manufacturers in reducing out of stock levels. © Aleksandar Grubor, Nikola Milicevic, 2013.